Out-Teach Your Competition
· Summarized
Key takeaways
- Transparency and sharing behind-the-scenes decisions create genuine connections and provide valuable lessons that benefit both the company and its audience.
- Out-teaching the competition through open content is a powerful strategy that aligns with the company's values and leads to growth without heavy marketing expenses.
- Lessons for small and medium-sized businesses should be practical and relatable; advice from mega corporations often doesn’t apply and can be counterproductive.
- Authentic, imperfect content sharing is quick, manageable, and more impactful than polished marketing efforts—focus on lessons and truths rather than vanity metrics.
- Building confidence in the success and value of small businesses helps dispel myths that bigger is always better, promoting a healthier business landscape.
- Sharing perspectives and lessons fosters community, learning, and trust, which are more valuable than secret formulas or proprietary information.
Summary
The Power of Transparency and Sharing the Behind-the-Scenes Process
Jason and David emphasize that their company culture revolves around openness, sharing their learning process and business deliberations openly. They believe that presenting work in progress, complete with its winding road, offers valuable lessons and genuine insights that polished final products cannot convey. This transparency fosters a stronger connection with their audience and has become a core part of their business philosophy, enabling them to grow without relying heavily on traditional marketing or advertising.
Out-Teaching the Competition as a Business Strategy
The podcast highlights that 37signals' strategy to differentiate itself is rooted in out-teaching its competitors. By sharing knowledge, decision-making processes, and behind-the-scenes content via blogs, YouTube, and other mediums, they attract attention and build trust. This approach, which Jason and David state is in their DNA, allows them to succeed with minimal advertising spend, and they see it as a superpower that offers an authentic connection with customers and potential clients.
Relatability and Practical Advice for Small and Medium Businesses
Jason and David argue that lessons from mega corporations are often irrelevant or even detrimental for smaller businesses. They advocate for pragmatic, accessible advice tailored to small and medium-sized companies. They emphasize that it’s perfectly valid—and often preferable—to operate with one’s current scale in mind, encouraging entrepreneurs to be confident and comfortable with their business size. Sharing real examples from their own journey reinforces this message and provides reassurance to other small business owners.
The Benefits and Challenges of Content Sharing and Teaching
The hosts discuss how sharing lessons, decisions, and behind-the-scenes content is not only cost-effective but also personally rewarding. They emphasize that good content doesn’t require perfect production or extensive effort—often, just a few minutes of candid sharing can be incredibly valuable. They address concerns about competitors potentially stealing ideas, drawing parallels with chefs who share recipes without risking their restaurants’ success. The core belief is that most business secrets are not truly secret and that openly sharing can build goodwill, trust, and a deeper connection with their audience.
The Importance of Authenticity and Avoiding Vanity Metrics
Jason and David criticize content marketing that’s driven by metrics or superficial goals. They prefer genuine sharing based on lessons learned and their experiences rather than trying to fabricate 'viral' content or chasing vanity metrics. They highlight the deeper value of earning attention through authenticity, which creates meaningful relationships and trust—something money can’t buy. They also mention that most of their insights come from real, raw experiences, and this approach is more sustainable and rewarding.
Sharing Perspectives, Aspirations, and Encouraging Confidence in Being Small
The hosts share that part of their mission is to normalize and celebrate small and medium-sized businesses. They encourage entrepreneurs not to feel pressured to scale or become unicorns; instead, they promote confidence and pride in operating at a human scale. They believe that the lessons learned at smaller sizes are more relatable and practical for most business owners and that sharing these perspectives helps reinforce that success doesn’t require reaching the extreme levels showcased by giants like Facebook or Google.
Final Reflections: The Joy of Sharing and Building Community
Jason and David conclude with reflections on the joy and importance of sharing their knowledge openly. They see sharing as a way to learn better and deepen their understanding by teaching others. They also express a desire to recreate the sense of community and mentorship that comes from open, honest sharing of business experiences. This authentic approach, they argue, not only benefits their own learning and growth but also helps foster a more transparent and accessible business culture.
Sponsors
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Show notes
Throughout its tenure, 37signals has consistently grown without spending much on marketing.
How'd the company do this? By out-teaching their competition.
Recently, they've begun sharing their thoughts on company decisions and even doing product walkthroughs on their YouTube channel.
Jason Fried and David Heinemeier Hansson, the Co-founders of 37signals, discuss the true value of sharing the behind-the-scenes of how they work and what they've learned in over 20 years in business.
Show Notes:
- [00:40] - The transparency in sharing the winding road of building your business.
- [01:17] - Why we share the behind-the-scenes of our work.
- [02:40] - David shares that the philosophy of out-teaching the competition is in their DNA.
- [03:04] - Building the company without overspending on advertising by sharing what we do through various mediums.
- [03:33] - Jason shares why the go big or go home tropes for building businesses fails to show all the options.
- [04:38] - How we built Basecamp.
- [05:25] - It doesn't have to be all or nothing: how sharing makes things more approachable for more people.
- [06:16] - The key to sharing what people need to hear when starting out.
- [07:13] - The value of practical and pragmatic lessons for small to medium-sized businesses.
- [09:01] - David shares why the lessons from mega companies might be detrimental to your company.
- [12:33] - Sharing the behind-the-scenes, how we work, and what we've learned in our over 20 years of business through our Discussing Decisions! Videos on YouTube.
- [13:49] - Why you won’t normally find the 'good stuff' in content marketing.
- [16:54] - Why Jason and David are not afraid of sharing their 'chef's' secrets.
- [18:21] - The "secret ingredient" lesson from Kung Fu Panda.
- [19:08] - Why most businesses succeed (or fail).
- [19:26] - The topics Jason and David don't feel are worth sharing.
- [21:32] - Jason shares why they don’t discuss revenue.
- [22:48] - Changing your lens of view to discover the value of the truth vs. a vanity metric.
- company.
- [23:41] - The immense value of sharing the 'true gold.'
Links and Resources:
Discussing Decisions! A Basecamp Pricing Experiment
Discussing Decisions! Card Tables and To-Dos
Sign Up for 30-day FREE trial at Basecamp.com
37signals on YouTube
The 37signals Guide to Making Decisions
Rework book
The REWORK podcast
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